On December 31, 2020, Corotel Company's year-end, the unadjusted trial balance included the following items: Account Debit Credit Accounts receivable $2, 050, 060 Allowance for doubtful accounts 28, 000 Sales ($2, 430,000 cash sales) $9, 720,000 Required: 1. Prepare the adjusting entry needed in Corotel's books to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 2% of credit sales. b. An analysis suggests that 5% of outstanding accounts receivable on December 31, 2020, will become uncollectible. View transaction list Journal entry worksheet 2